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CCEA clears initiation of process of disinvestment of three ITDC properties
New Delhi, May 3, 2017
The Cabinet Committee on Economic Affairs (CCEA) today gave the go-ahead for the initiation of the process of disinvestment of three hotels of the public sector India Tourism Development Corporation Ltd. (ITDC).
An official press release said that, in the first stage of the disinvestment process, three hotels have been taken up for disinvestment -- Hotel Lake View Ashok, Bhopal; Hotel Brahmaputra Ashok, Guwahati; and Hotel Bharatpur Ashok, Bharatpur.
In all three cases, the hotels / properties are being given back to the concerned States.
In the case of Bhopal and Guwahati, ITDC is divesting its share of 51% in the joint venture company formed for operation of the hotels whereas in the case of Bharatpur, the unit, which was only managed by ITDC, is being returned to the State Government.
The release said the decision on disinvestment has been made keeping in view the principle that running and managing hotels on professional lines is not the work of the Government or its entities. Further, there has been considerable development in the hospitality sector in the country in past years, with world class hotels and all leading international chains of hotels present in the country and providing services and facilities of highest standards.
As part of the disinvestment policy, it has been decided to lease/sub-lease the hotels / properties jointly with the concerned States or return the properties to the States, after fair valuation. The States would then have the option to upgrade and operate the hotels by involving the private sector or to utilize the properties as per their requirements.
States have exercised their options accordingly, in each case going forward with the option best suited to their needs, in line with the overarching principle that it is not the business of Government to run or manage hotels.